103 proposed firms pledge to invest Rs 72.62 billion in the first half of current FY

Published On: January 17, 2021 08:41 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 17: A total of 103 proposed companies have pledged to invest Rs 72.62 billion in the first half of the current fiscal year at a time when the running industries have been struggling to come to their full business size amid the coronavirus threat.

According to the Department of Industry (DoI), the number of companies seeking new licenses almost came to a halt in four successive months after the government imposed a nationwide lockdown on March 24. However, between mid-July and mid-December, the registration of new businesses took an upward trend. 

Of the registered firms, 23 will work in the service sector. These firms have pledged to invest a total of Rs 6.51 billion. Commitment of Rs 3 billion has been made in 13 agribusiness companies, Rs 53.63 billion in 13 projects of the energy sector, Rs 650 million in five firms of information and technology and Rs 1.57 billion in infrastructure-related projects.

The largest amount of investment of Rs 6.51 billion has been pledged in the manufacturing industry between a month from mid-November to mid-December. The DoI officials said the recent development in the firms’ registration is a positive sign for the economic revival of the country.

A study report unveiled by Nepal Rastra Bank last week also shows that 91 percent of the enterprises have resumed their operation recently after the government took a flexible policy in the aftermath of coronavirus impacts. While the production level of the firms has doubled to 50.51 percent, the employment level has gone up from 77.50 percent to 87.51 percent.


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